Bitcoin (BTC) miner Marathon Digitial is set to re-release a number of previous financial statements after the Securities and Exchange Commission (SEC) flagged some of the company’s accounting errors.
According to a Feb. 27 SEC filing, Marathon will restate its unaudited quarterly reports for Q1, Q2 and Q3 of 2021 and 2022 in addition to its audited 2021 annual report.
Marathon cautioned that affected financial statements, related earnings releases and other financial communications “should not be relied upon” during these periods.
The issues highlighted by the SEC were Marathon’s method of calculating depreciation on digital assets and Marathon’s finding that it had acted as agent rather than principal in operating a Bitcoin mining pool.
A principal is a legal entity that has legal authority to make decisions, while an agent is an entity that can only act on behalf of a principal.
Marathon indicated that changing the determination of its role in operating the pool from an agent to a principal will slightly increase revenue and cost of revenue, but doesn’t believe the change will impact the bottom line.
“The restatement of the affected financial statements is not expected to have an impact on overall margin, operating income or net income in 2021 or any interim period in 2021 or 2022.”
As a result of the accounting issues, Marathon postponed its fourth-quarter 2022 earnings call that was scheduled for February 28 and will delay the release of related financial results.
Marathon intends to file its 2022 results by March 16 after notifying the SEC that it would take up to 15 days to make the necessary corrections to the report, which was previously due by March 1.
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The miner announced on Feb. 2 that he sold 1,500 BTC over the course of January, marking the first time he has sold bitcoin since Oct. 1, 2020, as he attempts to build a “war chest” of cash and bitcoin building and securing can be flexible until 2023.
While 2022 proved to be a tough year for Bitcoin miners, leading to the capitulation of many firms such as Core Scientific on December 21 last year, a rising BTC price and stable electricity prices have helped the industry come into 2023 with the Production has rebounded strongly so far and hashrates are generally up across the board.
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